One Hard-to-Believe Trading Fact

Brent Nyitray, CFA, The Motley Fool
·4 min read
One Hard-to-Believe Trading Fact

Transaction costs like bid/ask spreads and commissions used to be a lot higher. The drop in commissions and trading costs was a tough pill for the brokerage industry to swallow, but the big exchanges like Intercontinental Exchange (NYSE: ICE) and Nasdaq (NASDAQ: NDAQ) have benefited from increased trading volumes. This is an instance where a change in an industry hurts one group (in this case, the stock brokers) but can actually help another group make more money (the stock exchanges).